Factors affecting share price on the market The price of listed shares on the JSE fluctuates every now and then. But investor should protect himself from the bad result of these factors. Beyond the laws and regulations of investment decisions making in stock market, certain factors are influencing … To reduce rumours and speculation, transparency should be increased in this market. However, all of this can be understood when one understands what moves the stock market. One saving grace for the FBM KLCI is that it climbed 26.8% between 2010 and 2019 as at Dec 23. There are two main explanations for the co‐movement between stock markets: one is based on the fundamental factors, including similarity degree of macroeconomic operating conditions and composition of industry structures. listed company) through to a complex environment of the entire economic system. The ZSE was driven mainly by speculation as investors sought to hedge against hyperinflation. Rumors in the market and news-feed by the media play a major role in influencing the stock market. but factors influencing decision making of individual can be differ from individual to individual because of their different socio, economic and psychological factors. Interest rates A variation in interest rates causes a flurry of movement in the stock markets. While seller supply and buyer demand meet in the market, there is no perfect equation that lets investors know exactly how share prices will behave. High interest rates, changes in taxation policies, market sentiment, GDP growth etc affect the prices of these futures. The Indian stock market is mainly regulated by the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). Therefore, predicting the stock market can be somewhat tricky as it is affected by a lot of factors. One moment they are up, the next moment they drop. The extant literature available strongly supports the movement of stock price as a consequence of firm specific factors such as dividend, book value, earnings etc. Also, most of these factors are beyond the control of investors. The fluctuation in stock prices ultimately affects the buying and selling of stocks. It is a subject of unconditional options that there are lot of factors-economic, political, internal, external, cultural, natural and social have an important role to play in instigating the instantaneous movement that the market experiences. Factors That Affect Stock Prices. For this, before and after analysis in stock market business, the investors should consider about three All of these can affect the stock market. Some of these factors include economic growth, unemployment, inflation, interest rates, and exchange rates. The data of our study covers the period from 1990 to 2005. Demand and supply. These stock markets act as a major determinant for the condition of the Indian economy. The price of the stock of a company is affected most of the time by the general market direction during a session. The current study represents an attempt to investigate the main factors determining stock prices in the UAE stock markets. While there are numerous factors influencing share prices, briefly explained below are some of the most crucial and decisive factors that cause stock prices to move up or down. exchanges in Bangladesh, Dhaka stock exchange is one of them on which researchers worked. Abstract: A number of studies have been undertaken to identify the factors influencing stock prices in different stock markets. Underlying Factors affecting the Stock Market Economic growth. This study investigates the factors that have influenced the share investment decisions of a sample of 270 investors in Khulna City. KEYWORDS Stock market, Earnings per share, Book value, Price earnings The stock market is designed to work on the age-old economic principle of demand and supply. However, there a number of factors that can move stocks up and down. In a bull run, if investors prefer buying a stock then the demand increases and so does the price. Market watchers have noticed that even though the U.S. economy has been suffering Examining Key Macroeconomic Factors Influencing the Stock Market Performance: Evidence from Tanzania Raphael GWAHULA Department of Accounting and Finance, Open university of Tanzania, Email: gwahulagr@gmail.com Abstract This study reflects on assessment of the micro economic factor hindering the growth of Dar es Salaam stock exchange market. There are a number of factors that affect the Indian stock market. Factors that influence stock prices In the quest to make money out of your stock, you need to understand the basics of the stock market and figure out what factors influence the stock prices. Thus, this study proceeded with the ... company repute, movement of stock market, and affordability of share price. Lower interest rates can make shares more attractive for two reasons. The research of Mills, Steven and Warren (1994) launched that financial factors have considerable influence on Higher economic growth or better prospects for growth will help firms be more profitable because there... Interest rates. The result came that EPS is highly correlated to stock price movement in the capital market. The decline of the Zimbabwe economy during that period caused capital flight to the stock market … All investors should be aware of some of the more common market moving influences that can affect a stock's price, so they can make better entries and catch an extra percent or two in return. influencing factors to such an extent that brings stability in the market. Alternatively, when people prefer selling the stock for whatever reasons, it increases the supply of the stock in the market and thereby prices of the stock declines resulting in a bear market. Stock prices are affected by many factors that can cause the value of the stock to rise or fall. Lower … As we have got different factors can affect the stock price movement. Demand and Supply. Volatility is an integral part of stock market investment, and if not managed well, you could end up making losses. The Market Place. The marketplace determines share prices. Four company specific factors EPS, book value, P/E ratio and dividend yield have chosen to compare the performances of stock price movements in the market. However, cultural factors influence 2.2 Influencing factors of stock markets co‐movement. Unlike the developed part of the globe, very limited research attempts have been undergone so far in the field of investors' behavior in the growing stock markets. Some economic factors influence stock prices, providing you with an idea of what might be next. Technical analysis can provide an insight into how a stock is trending. It is from this sense of slow development which drove the researcher to attempt this study with specific aims of assessing factors affecting stock market development in Tanzania using Dar es Salaam Stock Exchange as the case study, and The general direction that the stock market takes can affect the value of a stock: bull market – a strong stock market where stock prices are rising and investor confidence is growing. It is motivated by the observed significant investment in shares in DSE and CSE enlisted companies in recent years as well as the need to understand the behavioral aspects of the investors influenced by some socio-economic, cultural and psychological factors. The stock market is place where one can buy, sell and trade stocks of different companies.Share prices of stocks always fluctuate, they do not remain constant. And the first step in this process is to gauge what causes these trends in the first place. … connections between the stock market and the economy.” With that, here are 4 stock market observations that help explain what drives the movement of the stock market and how that might impact investment decisions: The ups don’t match the downs. Fremont, CA: The movement of stock markets are quite unpredictable, which means they do not move in a single direction. These factors influence a trader's decisions and ultimately determine the value of a currency at any given point in time. THE excitement has been elsewhere most years with not much joy at home — this could be one way of describing the performance of the Malaysian equity market in the decade that started in 2010. Factors Influencing Index Futures and Single Stock Futures (SSFs) Index and single stock futures are influenced by many of the same factors as the delivery based stock market. Stock market has been growing at a small rate due to presence of different hindrances. i. These fluctuations or movement of share prices is influenced by factors or independent variables. Stock market investment is risky because markets react to various internal and external factors. The 2000, the stock market inversely reacted to the factors that affected the economy negatively. An empirical analysis of the factors influencing individual investors in the Indian Stock market DOI: 10.9790/487X-2003123037 www.iosrjournals.org 31 | Page factors are the most influencing followed by social and economic factors. is an attempt to analyse the influencing factors which affects the movement of stock price either upward or down trend. It’s often tied to economic recovery or an economic boom, as well as investor optimism. The headquarters for both the organizations are located in Mumbai. Securities and Exchange Board of India regulates all the entities of Indian stock market including the stock exchanges and financial intermediaries.. Stock market is also seen as the economic barometer of a country thus the importance of stock market in the economy cannot be ignored. Fundamental analysis of companies can give us insights into their financial health. However, this is a paltry increase compared with that of indices in other markets, such as the Dow … The following are the factors that affect or even predict the buying or selling of stock that ultimately affects stock prices of companies. Behavioral finance deals with the influence of psychology on the behavior of financial practitioners and its subsequent impact on stock markets. Information related to listed companies should be easily accessible and available in order to clear gossips and rumours in the market. The forex market is primarily driven by overarching macroeconomic factors. Here are some factors that affect the hustle and bustle of Dalal Street. The price for shares goes up and down owing to a number of factors happening from individual business units (i.e. However, investors cannot ignore macro factors within the current economic environment. Market sentiment.
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